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So on our part, Hong Kong Government, would make every effort to prepare the 1997-98 budget which would reflect the wishes of Hong Kong people of the whole community and at the same time a Budget which is conducive to the smooth transition. We will also endeavour to reach a full consensus with the Chinese side on all the provisions in the 1997-98 Budget. There are very clear and explicit legal requirements for approval of the annual Budget of the Hong Kong Government. As Hong Kong Administration, we are obliged to meet these requirements. So our intention is quite clearly that we would submit a 1997-98 Estimates and a Budget to the Legislative Council for approval in the usual way in March 1997.
End
Healthy growth in Exchange Fund recorded
The Hong Kong Monetary Authority (HKMA) today (Tuesday) released the unaudited results of the Exchange Fund at end-1995 with total assets of the Fund up 13.5 per cent to HK$460.7 billion from HK$405.8 billion in 1994 and a 27 per cent growth in accumulated earnings, a performance indicator of HKMA's investment strategy.
As the Financial Secretary, Mr Donald Tsang, has already announced in his Budget speech, the foreign currency assets within the Exchange Fund totalled US$57.2 billion, placing Hong Kong seventh in the world in overall foreign exchange reserves and second in terms of per capita reserves, the same rankings as in 1994.
Accumulated earnings in the Exchange Fund surged from HK$125.8 billion as at end-1994 to HK$160.1 billion towards the end of last year, an increase of HK$34.3 billion.
"The HK$34.3 billion increase in accumulated earnings of the Exchange Fund was the biggest we've had in one year.
"The year 1995 was exceptionally good for bonds of all maturities with total returns the third highest since the Second World War.
"Since the Exchange Fund assets were held primarily in US bonds, we were able to benefit from the market rally," said Chief Executive of HKMA, Mr Joseph Yam.